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Minimum Hours Constraints and Retirement Behavior

  • Alan L. Gustman
  • Thomas L. Steinmeier

This paper presents statistics which confirm the existence of minimum hours constraints for jobs held by a majority of prime aged male workers who are not self employed. It then considers the implications of these constraints for studies of retirement behavior and related policy analyses. Potential biases associated with conventional analyses, which either ignore the existence of minimum hours constraints or assume they are pervasive, are discussed in the context of structural life cycle retirement models. A more realistic but still imperfect specification, which can be estimated given available data, assumes minimum hours constraints on the main job and variable hours elsewhere.

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File URL: http://www.nber.org/papers/w0940.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0940.

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Date of creation: Jul 1982
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Publication status: published as Gustman, Alan L. Gustman and Thomas L. Steinmeier. "Minimum Hours Constraints and Retirement Behavior." Contemporary Policy Issues, (Supplement to Economic Inquiry), No. 3, (April 1983), pp. 77-91.
Handle: RePEc:nbr:nberwo:0940
Note: LS
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  1. Olivia S. Mitchell & Gary S. Fields, 1981. "The Effects of Pensions and Earnings on Retirement: A Review Essay," NBER Working Papers 0772, National Bureau of Economic Research, Inc.
  2. Gordon, Roger H. & Blinder, Alan S., 1980. "Market wages, reservation wages, and retirement decisions," Journal of Public Economics, Elsevier, vol. 14(2), pages 277-308, October.
  3. Alan L. Gustman & Thomas L. Steinmeier, 1981. "Partial Retirement and the Analysis of Retirement Behavior," NBER Working Papers 0763, National Bureau of Economic Research, Inc.
  4. Anthony J. Pellechio, 1981. "Social Security and the Decision to Retire," NBER Working Papers 0734, National Bureau of Economic Research, Inc.
  5. Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-84, July.
  6. Boskin, Michael J. & Hurd, Michael D., 1978. "The effect of social security on early retirement," Journal of Public Economics, Elsevier, vol. 10(3), pages 361-377, December.
  7. John B. Burbidge & A. Leslie Robb, 1980. "Pensions and Retirement Behaviour," Canadian Journal of Economics, Canadian Economics Association, vol. 13(3), pages 421-37, August.
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